The stock market surged on Tuesday, led higher by rallying tech stocks. The Dow Jones Industrial Average (DJINDICES:^DJI) had gained 0.45% by 1:30 p.m. EDT.
Shares of Caterpillar (NYSE:CAT) failed to participate in the rally after the industrial giant reported bleak sales results for August. Meanwhile, Walmart (NYSE:WMT) stock headed higher after the retailer officially launched its new membership program, and Microsoft (NASDAQ:MSFT) stock rose after the tech giant rolled out cloud gaming as part of its Xbox Game Pass Ultimate service.
Sales slump continues for Caterpillar
Heavy machinery manufacturer Caterpillar is not seeing much of a sales recovery as the COVID-19 pandemic drags on. The company reported on Tuesday that rolling-three-month retail sales tumbled 20% globally in August, matching July’s decline.
The Asia Pacific region saw sales drop just 1% in August, down from an increase of 5% in July. North America was once again the weakest region for Caterpillar, with sales tumbling 35%. That’s marginally better than a 38% decline in July.
Rolling retail sales in the resource industries segment dropped 27% in August, worse than the 19% decline in July. Sales were down 17% for the construction industries segment, better than July’s 20% decline. By industry, retail sales to industrial customers tumbled 42%, and sales to oil and gas customers dropped 30%. Power generation was a bright spot, with sales up 14%.
Shares of Caterpillar were down 2.8% by early Tuesday afternoon. The stock is still up slightly since the start of the year.
Walmart launches membership service
Mega-retailer Walmart officially launched its Walmart+ subscription service nationwide on Tuesday. A 15-day free trial period will allow shoppers to try out the service, and they’ll pay either $12.95 monthly or $98 annually once the trial is over.
The core feature of Walmart+ is free same-day